This is a deal that has been discussed several times before – in talks dating back as far as the 1980s. But previous negotiations have foundered over who would be in charge in a combined company. Though it’s the smaller of the two, Stanley has won that battle – the new entity, Stanley Black & Decker will be headquartered in New Britain, and the CEO will be current Stanley Chief Executive John Lundgren. He says the deal will allow the combined company to grow more quickly in the economic recovery.
This combination presents our respective organizations with a unique opportunity. A unique opportunity to bring together two complementary companies with iconic brands and rich histories yet virtually no overlap. Also to create a comprehensive global offering in both hand and power tools
The deal will bring job losses. The two companies say they’ll shed about ten percent of their combined workforce – that would amount to approximately four thousand jobs. Stanley employs around 1,300 people in Connecticut – there’s no news as yet on which sites might be targeted for cuts. Stanley Works has suffered in the recession. Recent third quarter results showed the company’s earnings dropping 14 percent. Stanley has been attempting to expand its offerings in recent years, moving into the fast growing security market to offset falling revenues from its core tools operation.